Rocket Corp. earned net income of $153,040 and paid the minimum dividend to preferred stockholders for 2018.
Question:
Preferred Stock-6%, $60 par value; 2,000 shares authorized, 1,000
shares issued and outstanding ........................................................... $ 60,000
Common Stock-$5 par value; 80,000 shares authorized, 48,000 shares
issued, 46,700 shares outstanding ....................................................... 240,000
Paid-In Capital in Excess of Par-Common ........................................... 470,000
Treasury Stock-Common; 1,300 shares at cost (26,000)
Requirements
1. Compute Rocket's EPS for the year.
2. Assume Rocket's market price of a share of common stock is $12 per share. Compute Rocket's price/earnings ratio.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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